Phillips 66 Reports Fourth-Quarter Earnings Of $708 Million Or $1.11 Per Share

Chevron Phillips Chemical Company (CPChem) continues to advance several significant growth projects on the U.S. Gulf Coast, a region with access to advantaged petrochemicals feedstocks, low energy costs and established marketing networks to service customers worldwide. CPChem’s Sweeny fractionation expansion is scheduled to be complete in 2013, and its 1-hexene project is expected to start up during the first half of 2014. Additionally, CPChem is evaluating an expansion of its normal alpha olefins capacity at the Cedar Bayou complex in Baytown, Texas, and expects to make a final investment decision in the third quarter of this year. Construction of the expansion would be targeted to commence in the first quarter of 2014, and the project would be completed in the fourth quarter of 2015. The final investment decision for CPChem’s world-scale ethane cracker and related polyethylene units is expected later this year, with projected startup in 2017.

Phillips 66 is enhancing Refining returns by increasing access to advantaged feedstocks, as well as increasing export capabilities at its coastal refineries. The company continues to increase the supply of advantaged crudes to its refineries, supported by investments in logistics infrastructure and third-party commitments. Phillips 66 expects to process more than 200,000 barrels per day of domestic shale crude in 2013, an increase from the 2012 average of 112,000 barrels per day. In January, Phillips 66 entered into a five-year transportation and logistics contract with Global Partners to move approximately 90 million barrels of Bakken crude to the Bayway Refinery. The agreement provides a reliable, long-term alternative to more expensive Brent-priced crudes. In addition, the first of two chartered Jones Act vessels was delivered in January, with the second expected to be delivered during the second quarter of 2013. Both vessels will transport Eagle Ford crude to the company’s Gulf and East Coast refineries. The initial delivery of Phillips 66’s 2,000 railcars is expected to occur in early February. The railcars will be used to transport advantaged crude to the company’s refineries on the East and West Coasts.